A US telecommunications firm has announced plans to close down its factory in the town and lay off 60 workers.
It had promised to create 800 jobs in Cavan just 16 months ago.
Terradyne, which manufactures telecommunications equipment, said it plans to consolidate its Irish operations at its plant in Blanchardstown in west Dublin.
The company is expected to cease production by the end of next month.
The Dail is due to debate the closure tonight.